Health Law and Regulations Paper Essay

In the last decade, the debate over the ethics of organ and transplant allocation has intensified and the attention sensationalized in the media. At the core of this issue, critical questions remain. They include but are not limited to those regarding economics, race, and geographic inequity and about the moral relevance and weight of geography, economics, and other disparities and inequities in transplant allocation (Stanford University, 2012). Transplant allocation raises questions regarding the four of the basic major ethical principles of medical ethics: autonomy, beneficence, justice and non-maleficence. As such, bioethicists typically refer to the four principles of health care ethics in their evaluation of the merits and difficulties of medical procedures such as transplants. With regards to issue of transplant allocation, the four ethical principles can be applied to the issue in the following ways: Autonomy The principle of autonomy involves the patient having ‘a voice,’ ownership, autonomy of thought, action, intention and level of advocacy when making decisions regarding their health care procedures. As such, and as it relates to transplant allocation, the decision-making process should and must be free of coercion or coaxing of all involved and even the families of deceased individuals (Robertson, 2005; SU, 2012). In order for a patient and for families to make educated and fully informed decision, they must understand all risks and benefits of the allocation and the actual transplant procedure as well as the likelihood for success, especially since the process can illicit intense emotions, financial and physical set-backs(SU, 2012). Beneficence This principle stipulates that the transplant allocation and procedure be solely conducted with only the best intent of doing well for the patient(s)  involved. As such, the principle then also requires that health care providers develop and maintain the needed skills and knowledge, that they continuously update training and educational courses, consider individual circumstances of each and every patient, and strive to maximize the benefits as healthy and positive as possible (SU, 2012). Justice The principle of justice is grounded in the idea that the burdens and benefits of new or experimental treatments must be distributed equally among all groups in society. Therefore, as it relates to transplant allocation, the allocation or access to organs should be a fair process and not one in which ‘the highest and wealthiest bidder gets the organ transplant or the mere fact of only the rich have access to health insurance. That is not justice fair or equitable distribution of healthcare and in this case transplant allocation (Childress, 2001). The principle requires that transplant allocation and procedures uphold the spirit of existing laws and are fair to all players involved. As such, the health care provider must consider the four main areas when evaluating justice: fair distribution of scarce resources, competing needs, rights and obligations, and potential conflicts with established legislation (SU, 2012). Non-maleficence This principle requires that a transplant procedure does not intentionally or maliciously bring unanticipated harm to the patient, donor or others involved in the process. Surgeons operate under the assumption that they are doing little to no harm by pursuing the greater good. However, overall desired outcomes must be facilitated through the careful monitoring especially since transplant allocation can be inequitable, unfair and even the procedures do fail and can affect the emotional state of the patient. In some extreme cases, sometimes it is difficult for doctors successfully to do no harm principle (SU.2012). Transplant allocation often has a ripple effect as Burdick(2005) asserts: â€Å"Because there are not enough donated organs, all patients and practitioners are bound together by a community of medicine principle: whenever a patient receives a transplant, it diminishes the chance that other potential recipients will be able to receive this gift of life in time to save  them.†(275). Other very sad and disturbing well-known facts include but are not limited to: although through organ transplants many people have been helped and given a new ‘lease on life,’ a growing number of transplant candidates suffer and die waiting for life-enhancing or life-saving organs that just never materialize (SU, 2012). In conclusion, it is imperative that we stop, think and ask: How are organs for transplant allocated? How should they be allocated? In accordance with which ethical principle, theory, or precept? Should this scarce, expensive, life-saving therapy be only available to those who can ‘afford’ it and should it be distributed among the growing numbers of those who need it? (SU, 2012). According to Childress (2001), â€Å"the success of policies of organ procurement may reduce scarcity and hence obviate some of the difficulties of organ allocation. However, distrust is a major reason for the public’s reluctance to donate organs, and policies of organ procurement may be ineffective if the public perceives the policies of organ allocation as unfair and thus untrustworthy.† (p. 366). Transplant allocation creates ethical dilemmas because like general health care and health insurance, access and treatment are not equally available to everyone. Subsequently, in order for a medical practice to be considered â€Å"ethical†; it must respect all of the four ethical principles. Furthermore, it is critical that medical professionals, bioethicists, patients, and health insurers be cognizant of potential conflicts of interest when formulating and evaluating policies regarding transplant allocation (Burdick, 2000; SU, 2012). Many ethical and moral questions remaining include but are not limited to: racial and ethnic inequity, the moral relevance and weight of waiting time, the ethics of directed donation to individuals and groups, as well as those regarding the overarching ethical framework in which organs for transplant should be allocated. With such compelling questions and related aspects considered, it is mandatory, critical, inevitable and beneficial for all involved that the Council on Bioethics pays very close attention to the ethics of organ allocation. References Burdick, J. (2000). Responses to a critique of UNOS liver allocation policy by Kenneth Einar Himma. Cambridge Quarterly of Healthcare Ethics, 9, 275-283 Childress, J. (2001). Putting patients first in organ allocation: An ethical analysis of the U.S. Debate. Cambridge Quarterly of Healthcare Ethics, 10: 365-376 Robertson, C. (2005). Who is really hurt anyway? The problem of soliciting designated organ donations. The American Journal of Bioethics, 5 (4):16-17. Stanford University. (2012).What are the ethical concerns regarding egg donation? Retrieved from http://www.stanford.edu

Mr Guan

Report Report Due: pm Friday 23rd August, Week 4. Hand in report electronically vie e-learning. Time to complete: This assessment task should take the average student 10-15 hours to complete, Including research time. Late Penalty: As for all other assessment tasks for this course, late penalties are 20% of the maximum possible mark per day or part thereof.Time of submission Is logged via e-learning, note that the e-learning time may not be the same as your watch/phone/computer timely Weekends and public holidays are not included . Plagiarism: You must include a plagiarism compliance statement. Reports may be checked for plagiarism with an online system, please correctly use quotes from sources and reference them correctly as per the author/ date or numbered system. Refer to the library weapon for guidance on referencing and plagiarism.Any report found to have been plagiarisms will be processed as per the University plagiarism policy. Task Description: Written case study report (20% of course total assessment). Present a written technical (In report format as per lecture one guidelines) case study focusing on a major workplace safety incident that occurred (anywhere In the world). The emphasis and purpose of the report Is to; research, describe and discuss the Incident primarily In relation to the Safety Systems related to the event. Ђ Describe the Incident/event and possible causes of the event (including causes related to the management/operation of safety systems) Relate the incident/event to any failures in safety systems (including managerial) that were present Discuss what preventative measures could/should have been taken What changes would you suggest be made to limit the possibility of repeat event occurring? How would you review the effectiveness of your proposed changes?Word Limit: This Report should be approximately 2000-3000 words in length (not including the title page, summary, table of contents, references or appendices). Writing concise yet Informative reports Is an Important part of being a Professional Engineer. The ability to accurately convey Information In a concise, relevant and effective manner is a key skill that you should endeavourer to develop. Reports containing more than 3250 or fewer than 1750 words will result in mark penalties of 0% of the possible mark for every 250 words under/ over the limit.Grade Descriptors A+ A ABA+ B BIO 95 90 85 80 75 High Distinction 85% – 100% As for the criteria for ‘Distinction', however the work also shows a high degree of professionalism. The report structure is excellent and provides a convincing discussion/argument of the topic. There is good evidence of in depth, critical discussion of the topic. Report has excellent grammar, spelling and Is of a concise nature. The work shows a good appreciation of the general alma/purpose of the topic. There Is good coverage of the topic with relevant and accurate support ND a well developed scholarly discussion/argument .Grammar and spelling are very good and report is reasonably concise. The work is relevant and addresses several reasonable amount of the content and a scholarly discussion/argument has been advanced. There is limited evidence of an overall integrative view of the topic. Grammar, spelling and conciseness are lacking. The information in the various aspects of the work is relevant and accurate but is not integrated and only covers some core aspects of the topic. There is an attempt at a scholarly discussion/ argument and the work indicates a limited understanding of the topic.

Charlie Chaplin

They were shown with piano or organ accompaniment, sound effects, and subtitles. Comedy was the most popular type of movies during this time of films. The humor in these films were very slapstick-meaning people thought it was funny when someone fell on a banana peel or got a custard pie in the face. Buster Keating, Laurel Hardy, and Charlie Chaplin were some famous comedians. Many Canadians regularly attended one of the 900 movie theaters across Canada. Mary Pickoffs was a famous actress in the sass.Mary Pickoffs was a legendary silent film actress and was known as Americas sweetheart. She was a founder of United Artists and helped establish the Academy. Mary Pickoffs was born on April 8, 1892, in Toronto. In 1909, she appeared in 40 movies for D. W. Griffith American Biography company. She also worked as a producer and co-founded United Artists, with Charlie Chaplin, and Douglas Fairbanks, Sir. , who would become her second husband. Pickoffs retired from the screen In 1933 but continued to produce.She died In 1979. Sports Canadian sport In the sass was booming. People followed famous players Like Babe Ruth In baseball, Bobby Jones In golf and Howe Moreno In hockey. Medal really helped sports In Canada. Newspapers remoter all sporting events and magazines such as Manacles used sports articles. Radio and film started to use sports too. Baseball was the most popular summer sport In Canada. Every community had a baseball diamond and a team. The National Hockey League was established In 1917. There were only 5 teams, two In Montreal, one In Toronto, one In Ottawa and one In Quebec City. Professional hockey was becoming popular south of the border, but most hockey players were still Canadian. Music and Dancing Jazz was the music of the sass. Arlington with musicians In New Orleans. This style of music spread across the united States and North Canada. Some of the famous Jazz musicians were Louis Armstrong, Jelly Roll Morton, and Duke Longtime. Jazz music evolved through the decade. Soon there were genres of the music Like the blues and swing.Jazz music encouraged daring and energetic dances one of the most popular dances was called the Charleston. The Image above Is some people doing the Charleston. Entertainment In The sass By bioinformatics Entertainment in the sass By Joshua Abandons from the screen in 1933 but continued to produce. She died in 1979. Canadian sport in the sass was booming. People followed famous players like Babe Ruth in baseball, Bobby Jones in golf and Howe Moreno in hockey. Media really helped sports in Canada. Newspapers sport in Canada.Every community had a baseball diamond and a team. The National Hockey League was established in 1917. There were only 5 teams, two in Montreal, one in Toronto, one in Ottawa and one in Quebec City. Professional hockey was Jazz was the music of the sass. Originating with musicians in New Orleans. This style of music spread across the United States and North Canada. Some of the Jazz music evolved through the decade. Soon there were genres of the music like the of the most popular dances was called the Charleston.

Balanced Scorecard Assignment Example | Topics and Well Written Essays - 2000 words

Balanced Scorecard - Assignment Example Essentially, the balanced scorecard is concerned with analysis of four areas including customers, finance, business processes and learning and growth. Managers are usually engaged in collection of quantitative data and then analyzing it with the aim of making appropriate and long-term decisions courtesy of balanced scorecard technique. This paper will analyze five different papers, which have examined balanced scorecard through case studies, primary data collection and as well as secondary research. The papers have good insight on the applicability, advantages as well as the challenges of balanced scorecard in different organizational setups. The study will involve analysis of the aims, methods and results of each of the papers and then a different section will compare their results. Finally, the paper will end by a conclusion, which will explain what I have understood from this study. Purpose of the study The purpose of this study is to have a critical analysis of balanced scorecard based on the studies of other authors who have conducted their studies in various settings and using different methodologies. Analysis of researches done in different settings and based on different methods and results will provide insightful information on what balanced scorecard entails, its challenges and application in different organizations.... Using the insights derived from Yin (1994), the authors have researched the manner in which balanced scorecard performance management system has been fruitfully put into practice in two major hotel chains including Towers and ITC Maurya, which are located within the India’s capital. This case study comprises of the organizations’ interaction of 45 several stakeholders. Among those who participated in providing information in this study included the vice president, HR. In addition, secondary sources were examined for more evidence, which included power point presentations used to make communications in the organizations. Also conducted in the study was a cultural analysis that espoused the innovative intervention, whereby 20 employees including managers holding the top, middle and lower level positions were interviewed and the results recorded in an open-ended format. The results of the study show that a strategic and innovative HRM intervention in ITC Maurya leads to a relearning of a fresh performance-based culture and unlearning of the past culture, hence enhancing the successful execution of the balance scorecard technique. Nonetheless, this leads to institutionalization of HR role and the innovative process. The case study also typified BSC implementation in Maurya hotels. However, it is found that HR managers will have a challenge of repeating this intervention in the rest of the hotels in the capital, particularly depending on how the stakeholders are involved in the process as well as the manner in which the intervention involves the non-managerial staff. Service quality management applying the balanced scorecard: an exploratory study - Ratnasingam,

High altitude Essay Example | Topics and Well Written Essays - 1000 words

High altitude - Essay Example The results, as illustrated in figure 1 and 2, showed that there are changes in the cardiovascular system after exercise. There is increased value in both the systolic and diastolic blood pressure and heart rate. The result regarding the blood pressure is consistent with other researches (Kelley & Kelley, 2000) which indicated that there is a progressive increase both the systolic and diastolic pressure. The result regarding heart rate is also consistent with several studies (Arroll & Beaglehole, 1992) which indicated that there should be an increase in the heart rate after exercise. These changes in the cardiovascular system can be associated with the increase in the release of adrenaline after exercise which can cause an increase in the heart rate and blood pressure (Van Hoof et al, 1989). Figure 1. Systolic and diastolic blood pressure at rest and after exercise. (x-axis: subject; y-axis: blood pressure) Figure 2. Heart rate measured in beats per minute at rest and after exercise (x-axis: subject; y-axis: bpm) Also, results showed that there are major changes in the respiratory system after exercise. One observation is that there is an increased value in the respiratory rate (Figure 3). This is consistent with other studies which also showed an increase in the respiratory rate (Posner et al, 1992). ... The decrease in the gas volume can be attributed to the fact that the muscle of for breathing do not work maximally. It is because during exercise, the priority for the supply of oxygen is given to the muscles at work (gastrocnemius, bicep femoris etc). And lastly, regarding the gas composition, it was observed that there is an increase in CO2 while a decrease in O2 after exercise (Figure 5). The increase in CO2 and decrease in O2 is obvious because after exercise because there is a lot of work done. This work utilized more O2 and produces more CO2 through aerobic metabolism (Posner et al, 1992). Figure 3. Respiratory rate measured in breaths per minute at rest and after exercise (x-axis: subject; y-axis: number of breaths per minute) Figure 4. Gas volume measured in liters per minute at rest and after exercise (x-axis: subject; y-axis: liters of gas per minute) Figure 5. Gas composition of O2 and CO2 at rest and after exercise (x-axis: subject; y-axis: percent composition of gas) Al though not observed in the results, there are also some changes in the nervous system after exercise. Physical activity can actually improve cognitive function (Hertzog et al, 2008). Moreover, exercise can also promote protection against neurodegenerative diseases like dementia (Clement et al, 2005). And lastly, exercise can also enhance the release of nerve growth factors, which help the process of neurogenesis (McAuley, 2004). In the report, it is also stated that the students from the football team will go to La Paz, Bolivia for a series of matches during the break. It should be considered that La Paz, Bolivia is located in a high altitude and this might imply some changes in the physiological activity of the body which should be anticipated. It should be noted

A report on highest priority program Essay Example | Topics and Well Written Essays - 750 words

A report on highest priority program - Essay Example Also, the Department of Defense feels that the State has to bring back the allied forces so that the cost of maintaining such a high degree of expenditure n the troops can be minimized. Let us focus on the expenditure on the war on terror. The Department of Defense has spent an estimated amount of 4 Trillion USD. This is the highest amount of money spent by the Unites States of America upon a single agenda. The war on terror in Afghanistan and Iraq has cost us a lot of money and the results of the same have not been any fruitful. Even though the companies based out of USA have got the chance and opportunity to built industries in the areas which have been inflicted by the war, the Department of Defense in consultation with the Department of Commerce feels that the economic spending has outgrown the income received by the US based companies from doing business in the war inflicted areas. The highest priority for the United States of America is to control the high level of external exp enditure of the state. The international debt has increased dramatically in the past 3 years and the Department of Commerce in consultation with us have concluded that the war on terror has had dramatic consequences on the purchasing power parity of the Government. There are thousands of troops who have been lined up in Iraq and Afghanistan and it is imperative that we should start cutting down on the supply of our troops in those countries. â€Å"The President spent $850 billion on defense in his first year. This included $530.1 billion for the DoD base budget, and $152.7 billion to fund other departments, such as Homeland Security and the Veterans Administration.† Understanding from the above observations, it is imperative that the State is spending a lot more amount on external security than it has to. The State must recognize the fact that the spending is going out of bounds and it might become difficult to grapple with it. We must be vigilant with our money and it is cru cial that we do not allow the spending to escalate our economic debts. The Department of Defense has made this report in consultation and advises from the Department of Commerce. Moving forward, the Department of Defense categorically state that the States and the President should remove 50% of the troops from the war affected areas by 2015. By the time the country enters a safe economic zone period, it is imperative that the troops are then brought back to the country. We plan to put in a system in place where the interior troops of Iraq and Afghanistan shall be trained and provided with ammunition to counter any insurgency. We shall start the training method by July 2014 and hope to accomplish the training of at least 100000 troops in those countries so that we can then start to remove our troops gradually and place their troops instead. This will also allow those nations to manage any insurgency or attacks and shall make them self-sufficient. Once we send out our troops from the war affected areas, we shall then create a system of checks and balances which will make sure that the process of replacing our troops with their troops is seamless. By 2016 end of the year we hope to have taken away all the allied forces away from the war-ridden areas and reduce our expenditure on war by 80%. This will give the economy the much-needed impetus in terms of monetary strength. The economy will be face

Prophecy Essay Example | Topics and Well Written Essays - 750 words

Prophecy - Essay Example The prophecy of denunciation is when the events in the future are foretold based on the surrounding causes which can be prevented only by divine intervention or a miracle. Prophets speak definitely when they tell such prophecies of denunciation (newadvent.org). The prophecy of foreknowledge deals more with the individual, and man, in general. This kind of prophecy occurs when God shows the future that are relatively the consequences of man’s actions and decisions, including the occurrences of war and the unending debates between the religious and the government (newadvent.org). The prophecy of predestination is a kind of prophecy where it is only God who can make such events happen, and He is the only one who knows when it will happen. This implies God’s infallibility and divine power over all living things on earth (newadvent.org). History. The Catholic Church has recognized the Book of Revelation as the last form of prophecy, despite the numerous blessed individuals that she has recognized to have the gift of prophecy. From the Greek word, apokalypto, meaning to reveal, the Book of Revelation has been also known as the Apocalypse (newadvent.org). The Apocalypse was written by the apostle John, who traditionally, was recognized as the Seer. Arguments have been raised against the Apocalypse during the early ages, as Romans have contested its context, and it was only before the beginning of the third century, historians of the Catholic Church recognized the Apocalypse to be a gospel of John, the apostle (newadvent.org). Major Divisions of the Apocalypse. The Book of revelations is structured into three divisions, namely: the exhortatory letters, the seven seals and the drama of the lamb. The first part of the book focuses on the seven churches of Ephesus, Smyrna, Pergamum, Thyatira, Sardis, Philadelphia and Laodicea. The letters are epistles written for

Paediatric Trauma Essay Example | Topics and Well Written Essays - 2000 words

Paediatric Trauma - Essay Example Details of the case are presented in this paper as well as the proper medical management of this case base on the paramedical standard of paediatric trauma protocol and other reliable sources, utilising theories and related literatures significant in this study to convey a realistic and valid approach of management. Description of the Scene At 08:49, an accident was reported involving a 9-year-old boy, named Martin, who has been hit by a car travelling approximately 30 kilometres an hour whilst crossing the road on his bicycle. On the scene, the boy is conscious with some respiratory distress 10 minutes after the incident. His left leg appears to be deformed, more likely associated to fractured tibia, fibula, or both. A man holding the boy’s helmeted head, maintaining spinal alignment and who claimed that he is the driver of the car and a trained first aider, said that Martin complained about tightness in his chest and that he has asthma. Paediatric Trauma To start with, it is important to emphasize that the term â€Å"trauma† is being used in this study according to its medical definition as a serious or critical bodily injury, wound or shock (MedicineNet.com, 2011). Trauma is the leading cause of childhood mortality because after the age of 5 years, rapid neuromuscular development, frequent social interactions with other children, wider range of activities, and less parental supervision predisposes them to greater risk. Paediatric trauma is more difficult to handle than in adults as presented in Staheli’s (2003, pp. 105-107) ‘Pediatric Orthopaedic Secrets’ book of the contributions made by Dr. Cummings about child versus adult trauma management: Details about the child’s injury will be difficult to gather if the trauma was not witnessed by an adult; assessment is difficult to establish as children frequently resist examination. Trauma causes more death and injury in children than in adults and unintentional injury caus ing blunt trauma is more common to children. Between 30% to 70% of trauma deaths in children are due to head injury because anatomically, children’s head is larger in proportion to the body than in adults and their neck muscles are weaker, thus the cervical spine is more susceptible to injury; their skulls are thinner, and scalps are more vascular than those of adults. Children’s liver and spleen are larger relative to their size than in adults, making them prone to hemorrhage due to intra-abdominal injury. Children are more prone to hypothermia due to higher body surface-to-mass ratio, their skin is thinner and they have smaller stored fats compared to adults. Children cannot be relied on when it comes to immobilization required in fracture healing during recovery as they tend to resume normal activity (if unattended) once they do not feel pain anymore. Assessment of Paediatric Trauma At the moment the health care provider reaches the scene, it is a standard operating procedure that he/she will introduce himself/herself in the crowd while conducting the primary survey and clearing the site for potential harm. Assessment of paediatric trauma in pre-hospital setting should be done rapidly to make sure that the injured child will be transported right away to the nearest facility where in-depth assessment, management, and treatment shall be given. In the pre-hospital setting, the rapid assessment and preparation includes: (1) minimizing scene time, (2) controlling external bleeding and shock, (3) immobilization, (4) immediate transport to the closest appropriate facility, (5) obtaining information from the handover, (6) assessment for level of consciousness, respiratory rate, systolic blood pressure, revised trauma score, and paediatric trauma score, (7)

Was it right or wrong to use two atomic bombs on Japanese cities in Research Paper

Was it right or wrong to use two atomic bombs on Japanese cities in 1945 Why - Research Paper Example Deliberately attacking a civilian population is not considered morally acceptable regardless of any real or perceived outcomes. This view was and remains popularly held by both American civilians and the military; this reasoning was not employed in this case, but why? Was it the passions of wartime, a justifiable act in this one instance or was the bombing wrong under any circumstance? By summer of 1945, the Japanese were in dire straits, militarily and economically. The U.S. had won great victories at Okinawa and Iwo Jima, killed hundreds of thousands of Japanese soldiers and had a full naval blockade of Japan’s mainland. Shortages of oil and food supplies had all but brought the Japanese empire to it knees but its military showed no plans of quitting. In each battle, its soldiers fought ferociously to the last man in a victory or death mentality and suicide (kamikaze) missions were common. This led the American leaders to believe that an entire takeover of the Japanese island was necessary for final victory. To that end, the U.S. had planned for a massive invasion force to land on the shore of Japan in November of 1945 which was estimated to cost over a hundred thousand American lives and many more Japanese. The U.S. was well aware of the fanaticism displayed by the Japanese; therefore, military leaders were not anxious to encounter an entire population o f a country that possessed this mentality and were militarized as well. The avoidance of this ensuing confrontation and the war weariness of the American public are the common justifications for dropping the bombs. It was and is argued that the atomic bombs ultimately saved many American and Japanese lives. â€Å"It was the destruction of Hiroshima that finally brought Emperor Hirohito to confront the Japanese military and order the surrender of Japan† 1 The Japanese had amassed nine divisions; 600,000 heavily equipped forces in southern Japan prior to the bombing of Hiroshima.

Psychology spec Essay Example for Free

Psychology spec Essay We dont aim to profit from education we want you to. If you are an existing customer then we thank you for your support. If you are thinking of moving to AQA then we look forward to welcoming you. 1. 2 Why choose Psychology? The revised specification will provide students with a sound understanding of the various methods and approaches in psychology at an introductory level. Knowledge of methods and approaches will be illustrated through various topic areas representing the core areas of social, cognitive, developmental, biological and individual differences. The topic areas have been chosen because of their importance and prominence within the core area and their relevance to everyday life. The specification requires candidates to nderstand ethical issues that must be considered when conducting research in psychology. New content has been introduced, while less popular topics have been removed. Unit 1 of this specification can be delivered as a Short Course. GCSE psychology is no longer tiered; therefore the question papers have been designed to be accessible to candidates of all abilities. . 3 How do I start using this specification? Already using the existing AQA Psychology specification? Register to receive further information, such as mark schemes, past question papers, details of teacher support meetings, etc, at http://www. qa. org. uk/rn/askaqa. php Information will be available electronically or in print, for your convenience. Tell us that you intend to enter candidates. Then we can make sure that you receive all the material you need for the examinations. You can let us know by completing the appropriate Intention to Enter and Estimated Entry forms. We will send copies to your Exams Officer and they are also available on our website (http://www. aqa. org. uk/admin/p_entries. php). Not using the AQA specification currently? Almost all centres in England and Wales use AQA or have used AQA in the past and are approved AQA centres. A small minority are not. If your centre is new to AQA, please contact our centre approval team at [emailprotected] org. uk 1. 4 How can I find out more? Teacher Support You have 24-hour access to useful information and answers to the most commonly-asked questions at Details of the full range of current Teacher Support and CPD courses are available on our web site at http://web. aqa. org. uk/qual/cpd/index. php If the answer to your question is not available, you can submit a query for our team. Our target response time is one day. There is also a link to our fast and convenient online ooking system for all of our courses at http://coursesandevents. aqa. org. k/training 2 Specification at a Glance (Short Course) 4181 Unit 1: aking Sense of other people (41801) Written Paper 1 hour 30 mins 80 marks 100% Candidates answer all questions (Full Course) 4182 Other People 80 marks Unit 2: Understanding Other people (41802) plus For assessments and subject awards after June 2013 there is a requirement that 100% of the assessment is terminal. 3 Subject Content Students should have experience of designing and conducting informal classroom re search using a variety of methods. They will be expected to analyse data collected in investigations at a descriptive level and draw conclusions based on research findings. They will be required to draw on these experiences to answer questions in the examination for these units. In the delivery of these units, it is expected that teachers will seek out contemporary examples of theories and research to develop their candidates understanding of the subject content. 3. 1 Unit 1 Making Sense of Other People Memory Processes of encoding, storage and retrieval. The multi-store, reconstructive and levels of processing explanations of memory. Description and evaluation of studies to investigate explanations of memory. Explanations and studies of forgetting including interference, context and brain damage (retrograde and anterograde amnesia). Eyewitness testimony. description and evaluation ot studies ot tactors which attect the reliability eyewitnesses accounts of people and incidents, including the research by Loftus (1974), Bruce and Young (1998). Contemporary practical applications derived from the explanations of memory and forgetting and their benefits and drawbacks.

Company Analysis for Investment Opportunities

Company Analysis for Investment Opportunities 1 Introduction We have organised a shareholders club which we have called 6IM. There are six members within 6IM of which we all have  £1000 each to invest. As part of our Investment process we have decided to choose three companies in different sectors and conduct an in depth financial analysis. Due to the three companies working in different sectors we have also analysed key financial data of a major competitor to that particular company. We feel this will enable us to gain a greater understanding of the industry of which the three companies are working in and also a direct financial comparison with our chosen companies. Our report will begin with a brief profile of the three companies followed by a SWOT analysis to enable us to paint a picture of where the company currently sit and the potential investment opportunities and risks associated with that particular company. In addition to this we will conduct a five forces investigation to understand the industries competitiveness. In respect of financials we will gain an understanding of the numbers in the annual reports of both our targeted three companies and also our competitors. We will use a number of investment ratios to quantify the numbers which will help us review the performance of our chosen companies against our competitors and in addition devise a brief explanation as to what aspects of the business have made a positive or negative impact on the ratio in which we are assessing. The ratios that we will choose will be independent of each other due to the fact that some ratios are more relevant than others in certain industries. The ratios will be conducted for each of the last 3 financial years for both our targeted companies and competitors. The ratios will be split into four categories liquidity, profitability, financing and investment. Finally we will then standardise the ratios and compare our three chosen companies. We will use a marking system to identify which company we feel excel in each ratio to help us arrive at our chosen investment vehicle. The three companies in which we will be conducting the report on are: 1) MGM Grand Sector: Leisure Tourism Fiscal year: Jan 01st – Dec 31st 2) Rio Tinto Sector: Mining Fiscal year: Jan 01st – Dec 31st 3) Toyota Sector: Car manufacturing Fiscal year: April 01st – March 31st Investment Objective A medium term investment of 5 years Provide income through dividends Provide capital growth at the end of the term We would be looking at an annual expected return of between 8% and 10% Tax Implications 6IM discussed about the tax implications of our investment objectives. We felt that as we were all basic rate taxpayers receiving a dividend would be beneficial as we would not be impeded by the non reclaimable 10% tax credit or would we have a further liability of 22.5% due to the fact we were not higher rate tax payers. Regarding capital growth it was decided that if our money had grown substantially over the five years and the profit was above the capital gains tax annual exemption we would realise the gains over two tax years to ensure we would utilise as much of the gain tax free as possible. According to Tax Facts 2009-2010 (2009), Current Capital Gains Tax annual exemption is:  £ 10,100 (2009-10) Current Capital Gains Tax subject to being over the exemption is: 18% Attitude to Risk 6IM have agreed that we will adopt a moderately adventurous attitude to risk. As part of our risk assessment, collectively we decided to assess ourselves using a risk attitude profiling questionnaire as per Appendix II which was designed by Scottish Life a leading Life Pension investment provider. We discussed our views on ethical investments and we concluded that whilst our opinions were not strong enough to adopt negative screening criteria which would be to completely disregard any unethical company, we would look to see if the companies are trying to improve the way they work. In respect of the three companies chosen we also discussed that we would need to be aware of currency risk, political risk, market risk and inflation risk which would be in addition to the business risk and investment specific risk of the company. Finally our thoughts were if we felt that each of the companies were viable in respect of investment we would be happy to spilt our money and invest in all three which would gain potentially reduce our risk through diversification. 2 Marketing and industry data 2.1 MGM GRAND 2.1.1 Background and mission Background MGM operates in a very competitive entertainment and hospitality industry and is located on the New York Stock Exchange. The company owns, develops and operates casino and non casino resorts. The majority of MGMs hotels are located in Nevada where they own approximately 700 acres of land on the Las Vegas strip. Whilst MGM have a variety of hotels that occupies this land they also have a meaningful proportion that is considered undeveloped and could offer future investment opportunities. As well as resorts in Las Vegas, MGM also have operations in Michigan, Mississippi, Macau, Atlantic City and Illinois. One of their latest developments is the MGM Grand Ho Tram which will consist of a 4.2 billion multi property resort complex along the beaches of Southern China. In addition to this MGM will also open in December 2009 on the Las Vegas strip a project called City Centre which is a joint venture with Dubai World. MGM as at 31st December 2008 employ approximately 46,000 full time staff and 15,000 part time staff, they pride themselves on offering excellent customer service which has been demonstrated by many accolades, including AAA five diamond and 4 diamond awards at hotels and restaurants across their portfolio. There quality and reputation was enhanced further in October this year when 7 of MGMs restaurants were honoured with at least one Michelin star which demonstrates the quality they strive for. MGMs revenue in 2008 decreased by 6.27% which was largely down to the economic conditions and with MGM having the vast majority of its portfolio in Las Vegas this could be demonstrated by the reduction in visitor volumes during the time period (Appendix I). MGM feel whilst times are currently tough James J. Murren Chairman and CEO states â€Å"There company is well positioned to face the future thanks to our dedicated management team and work force, premier brands and best in class resorts. When the cycle changes, we will be stronger, with a foundation of experienced operators and an efficient operating profile that is not only business ready but has been battle tested.† (MGM Annual Report, 2008 p.8) Mission MGM Mirage Mission Statement, â€Å"Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance a shareholder value and to sustain employee, customer and community relationships† (MGM Mirage, 2009). 2.1.2 SWOT analysis Strength Quality Employees: MGM have invested heavily in recruiting, training and maintaining employees. They run a variety of programs for example a diversity program which looks at unique strengths of individuals and being able to blend them to work together to achieve greater performance. In addition to training, to ensure they maintain their employees in August 2007 MGM entered into an agreement with 21,000 thousand of its Las Vegas employees to provide an increase in wages and benefits of approximately 4% annually. Diversified Offering: MGM would be expected to earn the majority of its revenues from gaming however this is not the case with over half of its net revenue derived from non gaming activities. MGM offer a complete resort experience for its guests, with their non-gaming activities being offered at a premium due to the quality of their offering. Brand Name Awareness: MGM is one of the leading hotel and leisure companies as at December 31st 2008 their operations consisted of 17 wholly owned casino resorts and a 50% investment in 4 other casino resorts. This high brand name awareness gives MGM a distinct advantage when competing against other casino brands and helps enable them to draw more customers. Weaknesses Financial Strength: In February 2009 all of the major credit rating agencies – Moodys, Standard Poors and Fitch downgraded MGMs rating on long term debt, there was a further downgrade by Moodys in March 2009. These downgrades will again potentially make it very difficult for MGM to obtain debt finance and may even increase the cost of any future debt financing. Amount of Indebtedness: As at the 31st December 2008, MGM had long term debt totalling approximately US$ 13.5 billion dollars. The amount of debt and the inability of MGM to take on further debt could have a catastrophic impact on its business. It is uncertain that the sources of credit they have available will be sufficient to fund current financial commitments, whilst MGM have received a waiver that they do not have to comply with certain financial covenants this has led to further restrictions and requirements for them to adhere to. Weak Returns: In 2008 MGM have seen a reduction in the majority of their financial ratios compared with its 2007 figures. The figures can be seen in our ratio analysis section of the report and whilst an explanation of the figures have been discussed, the reduced ratios can only cause investors concern and a reduction in confidence in placing investment into MGM. Opportunities Joint Ventures to co-develop resorts and Casinos. Expansion in developing countries. Threats Legal and Regulatory Threat: The gaming industry is highly regulated in which MGM must pay gaming taxes and maintain their licenses to continue their operations. A change in tax laws could adversely affect the profitability of their organization, in addition to tax changes if a regulation is violated in one jurisdiction this could result in disciplinary actions in other jurisdictions. Economic Market: Hotel revenue decreased by 10% in 2008 due to decreased occupancy and lower average room rates. The customers however that do make it to the resorts are spending less, which MGM believe is due to their inability to access near term credit which has led to a shift in spending from discretionary items to more fundamental costs (MGM Annual Report, 2008). A direct impact on MGM is the weak housing and real estate market both generally and in Nevada. 2.1.3 Leisure Tourism industry Five Forces analysis Threat of new entrant Due to the current economy recession, hotel industry suffered a setback in revenue. Hence, this industry is viewed as unattractive. Excessive initial setup investment. Extensive regulation generally concerns the firms responsibility, financial stability and character of the owners. Also, high license maintenance fee and gaming taxes discourages new entrants. New entrants to such markets must then spend heavily on advertising and promotion to gain levels of brand awareness of the existing players. Intensity of rivalry among competitors Hotel, resort and gaming business, especially in Las Vegas and Macau, had became increasingly intense where there is rivalry to build the â€Å"biggest and best† hotel/casino. Between 1996 and 2000, the number of hotel rooms at Las Vegas casinos doubled and due to the current economic conditions, the demand for rooms had dropped significantly and resulted in reductions to average room rates due to competitive pressures. Competition between casino companies involved ever more ambitious differentiation. The new casinos in Las Vegas broke fresh ground in innovative entertainment and design features. Threat of substitute products There had been a growing substitute competition for gaming which included an increasing number of state lotteries and offshore gambling on cruise ships. The installation of slot machines in unorthodox gambling area such as horse tracks. The growth of internet gambling. Bargaining power of buyers In the entertainment industry, buyers (consumer) usually have relatively high bargaining power as there is a practically negligible switching cost. The tendency of buyers to explore different hotel for a different experience. Accessibility of information via internet on hotel packages, consumers are now more informed and prepared for the wide range of available hotels specifically in Las Vegas and Macau. Bargaining power of supplier The main sources of supplier power in the service industry are labour unions. The unions cover approximately half of their total employees (30,000 of 61,000 employees) and had successfully negotiated for increases in wages and benefits of approximately 4% annually via the newly signed 5 year collective bargaining agreement in August 2007. The other supplies to hotel consist of food and beverage, retail merchandise and operating supplies. Due to economies of scale, big buyers like MGM would have an advantage over their suppliers as they can easily switch due to the wide availability of the supplies and its continuous stream of demand. 2.2 RIO TINTO 2.2.1 Background and mission Background Rio Tinto is a leading international mining business headquartered in London. Rio Tinto Group combines Rio Tinto Plc (listed on London Stock Exchange) and Rio Tinto Limited (listed on the Australian Securities Exchange) and operates as a single entity. The group is involved in mining and supply of minerals and metals including aluminium, coal, copper, diamonds, gold, iron ore, uranium and other industrial minerals. It operates in more than 50 countries and employs approximately 106,000 people (Rio Tinto, 2008). The companys main production areas are in Australia and North America however there are significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto concentrates on large scale mining operations that have a long life and are cost effective. The company recorded revenue of US$ 54,264 million in 2008, an increase of 83% over 2007. Annual production records set for iron ore, bauxite and alumina. The business had a record net capital expenditure of US$ 8.5 billion, a 71% rise over 2007 (Rio Tinto, 2008). Mission â€Å"Rio Tinto aimsto maximise the overall return to its shareholders by sustainably finding, mining and processing mineral resources areas of expertise in which we have a clear competitive advantage.A fundamental part ofthis is to deliver value while operating in an ethically and socially responsible manner, and remaining committed to long term sustainable development.† (Rio Tinto, 2009) 2.2.2 SWOT analysis Strength International mining group ranks amongst top five commodities producers. Rio Tinto has extensive line of business (Iron ore, Copper, Energy, Aluminium, Industrial Minerals and Diamond) and each division provides its services to different industries. Company is well diversified in terms of the products and the markets. Geographically companies operations are spread over six continents. Globally number one producer of Aluminium because of recent acquisition of Alcan in October 2007. Alcan was ranked globally among top three producers of Aluminium and Bauxite. Worlds largest Uranium supplier. Weaknesses Majority of Iron ore and coal contracts are sold at annual contract price rather than the spot market. There is a significant deterioration in the pricing environment of these commodities. Production of zinc and silver by the company has been decreasing in recent times. Opportunities BP and Rio Tinto entered into partnership for the formation of a new jointly owned company, Hydrogen Energy, which will develop decarbonised energy projects around the world and lead the path for sustainable future uses of coal. The growing importance of uranium as a resource for future energy needs. Threats In the recent time there is a significant reduction in the commodity prices and the demand of the market especially because of the global economic crisis. Rising concern for environmental issues, health and safety standards across the globe. Especially for the industry to meet standards and quotes agreed in the KYOTO Protocol. 2.2.3 Mining industry Five Forces analysis Threat of new entrant High demand of capital as entry cost makes it tough for new entrant to enter in this field. Very low availability of new mining areas (mines) and risk on capital involved in searching for new mining areas restricts new entry in this field. Requirement of high, sophisticated and costly technology is again an entry barrier for new entrant. High government and environmental regulations. Intensity of rivalry among competitors High demand and optimum supply leads to limited rivalry amongst competitors. Threat of substitute products Being a standardised product (commodities) and basic raw material to the industry or to the end customers, there is no availability of substitute. Prices are fixed at macro level generally by external authorities (government) so the variability in prices of different suppliers is absent. Bargaining power of buyers Strong control on Pricing by government leads to low bargaining power of customers. Unavailability of substitute products shifts the favour towards the supplier from the customers. Customers (Industries) dependency on existing channel of distribution and product is very high; therefore the customers power is again low. Bargaining power of supplier Bargaining power of suppliers supplying technology is high because of the sophisticated technology requirement and reduced availability of specialist suppliers. Skilled labour requirements are high and availability is lower because of less lucrative future prospects that shift the favour towards suppliers. 2.3 TOYOTA 2.3.1 Background and mission Background Toyota Motor, the worlds largest automotive manufacturer, has a powerful aspiration to become ‘Greener. The company makes a hybrid-powered (petrol and electric) sedan – the ‘Prius that is being snapped up in US and European markets. Its petrol-powered cars, pickups, minivans, and SUVs include such models as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the Scion brand, and a full-sized pickup truck, the V-8 Tundra. Toyota also makes forklifts, manufactured housing and offers financial services. Once a dark horse in the global automotive game, Toyota overtook Chrysler and Ford in worldwide sales and surpassed General Motors in 2008. The company gets nearly half of its sales from Asia (Just Auto, 2009). Mission Toyotas management value has developed from the companys origins and has been contemplated in the termsâ€Å"Just in Time Production† and Lean Manufacturing, which it was instrumental in developing (Strategonic, 2009). The Toyota Way has five mechanisms (Liker Jeffrey K., 2003): Perfecting business process. Eliminating wasted time and resources Building quality into workplace systems Building a learning culture for continuous improvement. Finding low-cost but reliable alternatives to expensive new technology 2.3.2 SWOT analysis Strength Toyota has become the lead name in the global market. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. The important edge over the companys competitors is the ample availability of the spare parts in the markets. Toyota is a financially strong company. This can be demonstrated by the analysis of the financial reports. Toyota vehicles have got a much stronger resale value than any other car in the global markets. This is why people prefer to buy a Toyota. Toyota is proud to have a successful team of competent managers and skilled workers. Extensive training has enabled the employees to perform outstandingly. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. Weaknesses Being big has its own problems. The World market for cars is in a condition of oversupply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan therefore it is exposed to fluctuating economic and political conditions in those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging India and Chinese markets. Movements in exchange rates could see the already narrow margins in the car market being reduced. There are some weaknesses in the dealership network. The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. This can result in customer complaints. A lot of effort is put into the sales forecasting because of the changing political and economic scenarios. For these reasons inventory has to be kept low. Opportunities Export is a major opportunity for Toyota Motors. Toyota can do better by focusing on segments much more than what is presently being done. Toyota is to target the urban youth market. The company has launched its Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at the rear. The narrow segment is notorious for it narrows margins and difficulties for branding. Switching diesel market toward petrol and CNG market. Threats Even though Toyota enjoys the position of being the no.1 automobile company, still it faces some threat from competitors especially Honda. Honda has adopted aggressive strategies for capturing the market. In 2005 the recall of 80,000 SUVs negatively impacted on the brand of Toyota and posed a threat to its future reliability and sales. Even though Toyota keeps a careful eye on the changing trends, still the changing customer needs and trends can prove to be a threat. 2.3.3 Automobile industry Five Forces analysis Threat of new entrant Slow lethargic state of economy resulting in low per capita income leads to declined consumption. Hence, the productivity decreased at manufacturing level. Automobile sector is already over saturated market for the provided demand base. Initial cost of capital is very large. Industry requires highly specialised technology or plants and equipments. Constant RD: Patent and proprietary of auto designs restrict the entry into an industry. Intensity of rivalry among competitors Due to high cost of competition automobile industry earns low returns. Competition has intensified rivalry by offering rebates, long-term warranties and preferred financing to lure the customers which have put pressure on the profit margins. Foreign Trade increased the degree of rivalry. Export becomes essential for expansion and competition. High exit barrier: Entrants are reluctant to commit to acquiring specialised assets that cannot be sold or converted into other uses if the venture fails. Threat of substitute products Consumer seek substitute like bus, train or aeroplane to reach their destination. Peoples likeliness to seek alternative transportation depends upon the cost of operating a vehicle. Higher the operating cost less likely people will buy the automobile. Consumers decision to buy vehicles largely depends upon the price of petrol. Emergence of very small and economical car segment in automobile sector. Bargaining power of buyers Consumers are highly price sensitive and generally dont hold much buying power as they never do bulk purchase of cars. Wider range of product, negligible switching cost, readily available. More shrewd customers: Customers are very particular in terms of brand selection, technology and price of product. Dealers are cherishing the freedom of selling more than one brand at any time. Bargaining power of supplier Due to the fragmented automobile industry, most of the suppliers depend on just one or two automakers to buy majority of the products. Switching the supplier is devastating to the business of previous supplier. Long term supplier relationship in the automobile sector, which is considered to be an oligopoly, makes the relationship obligatory for suppliers and hence the supplier has lower grip on the prices Suppliers provide secondary material and have little responsibility over the design and assembly of automakers. Therefore, essentially little power is given to suppliers. 3 Financial Analysis The report describes a financial statement analysis between companies of our choice with their closest competitor which is followed by a 3 year trend analysis to provide an indication of the consistency of the companys performance. Assessment of performance will focus on 4 main areas namely profitability, liquidity, financing and investment. In order to provide comparability, relevant financial figures are converted to US dollar as per exchange rate stated in respective annual report. 3.1 MGM GRAND 3.1.1 Profitability Gross Operating Margin According to Walton and Aerts (2009) gross operating margin is the preferred ratio to measure operation efficiency. In the hotel industry, cost of sales revolve around payroll related expenses, gaming related taxes, room, convention, retails and other expenses. In year 2008, MGMs gross operating profit had dropped from 48% to 44%, due to drop in room occupancy by 10% affecting sales with no reduction in Cost of Sales in comparison to 2007. Stagnant Cost of Sales could be explained as there are several fixed expenses like payroll, electricity, food, etc would still be maintained regardless of room occupancy and further to that, in August 2007, there are total of 21,000 MGM employees entered into a 5 year agreement which provides approximately 4% annual increment in wages and benefits. This had contributed to the increase of the payroll expenses in 2008. As for Las Vegas Sands, through the opening of new hotels like Venetian Macao, The Palazzo and Four Seasons in 2008 it had increased its sales, however there were a substantial amount of additional payroll, advertising and promotion as part of opening activities related expenses and the launching of new passenger ferry service operations in Macao where it had an additional US$100 million in operating expenses. This had affected its gross operating profit margin to drop from 40% to 36% in 2008. In terms of gross operating profit margin, MGM had been observed as a better company in controlling cost as its margin had been higher than competitor Las Vegas Sands by 7% on annual basis. Net Profit Margin According to Walton and Aerts (2009), net profit margin explains that the ratio shows how successful the management is in creating profit from a given quantity of sales. MGM has steadily increased its net profit margin except in 2008, this compares favourably to its competitor Las Vegas Sands who has shown a trend of reducing profits since 2006. The size of the loss however in 2008 was far greater for MGM. Whilst the revenues for MGM have remained fairly constant, the reduction in profit was largely down to certain areas of its operating expenses in particular US$1.2 billion impairment charge related to goodwill and an indefinite lived intangible asset recognised in the Mandalay acquisition in 2005. Having reviewed the accounts, we would also address an area of caution in the MGM profit margin in 2007 as there was a one off recognition of a US$1.03 billion gain in relation to the City Centre Project. Due to the fluctuation in MGM net profit margin due to several onetime adjustments in the years 2007 and 2008 which makes it insufficient for comparison against Las Vegas Sands, hence only figures from 2006 would be taken for assessment where Las Vegas Sands net profit margin seems more favourable than MGM. Return on capital employed (ROCE) Return on capital employed (ROCE) is a performance ratio that demonstrates how much the company has earned on invested long-term funds (Walton and Aerts, 2009). In 2008, MGM board of directors had announced 20 million share repurchase which caused the total shareholder equity to drop by 34%. With this drop, we would be expecting an increase in ROCE ratio from 0.17 to 0.19 if income before tax and long debt remains the same in 2008. However due to the loss in 2008, the actual ROCE ratio indicates a negative return of 0.79% in relation to equity. On the other hand, Las Vegas Sands ROCE ratio in 2008 had dropped by 2% due to the increased of total asset by 33% due to the distribution of common share and preference stock amounting US$ 2.56 billion, which increased the stockholder equity by 50% and additional long term debts amounting US$ 2.84 billion. Despite the fact that Las Vegas Sands ROCE ratio had dropped in 2008, Las Vegas Sands still stand a better position than MGM as there are still positive returns. Return on shareholders equity (ROECE) MGM over the three years have had a very volatile ROECE which saw progression from 2006 to 2007 but in 2008 produced a negative 5.22% return in relation to Shareholder Equity. The components that make up the ROECE are very similar to the ROCE except that the ROECE is after interest and tax but before payments of dividends. In respect of MGM dividends are irrelevant as they have not paid a dividend in the last three years. The negative return in 2008 was solely down to their losses of US$670 million from their continuing operations before income tax. This loss was further inflated by US$186 million provision for income tax expense even though the company made a loss. The provision was for a non deductable good Company Analysis for Investment Opportunities Company Analysis for Investment Opportunities 1 Introduction We have organised a shareholders club which we have called 6IM. There are six members within 6IM of which we all have  £1000 each to invest. As part of our Investment process we have decided to choose three companies in different sectors and conduct an in depth financial analysis. Due to the three companies working in different sectors we have also analysed key financial data of a major competitor to that particular company. We feel this will enable us to gain a greater understanding of the industry of which the three companies are working in and also a direct financial comparison with our chosen companies. Our report will begin with a brief profile of the three companies followed by a SWOT analysis to enable us to paint a picture of where the company currently sit and the potential investment opportunities and risks associated with that particular company. In addition to this we will conduct a five forces investigation to understand the industries competitiveness. In respect of financials we will gain an understanding of the numbers in the annual reports of both our targeted three companies and also our competitors. We will use a number of investment ratios to quantify the numbers which will help us review the performance of our chosen companies against our competitors and in addition devise a brief explanation as to what aspects of the business have made a positive or negative impact on the ratio in which we are assessing. The ratios that we will choose will be independent of each other due to the fact that some ratios are more relevant than others in certain industries. The ratios will be conducted for each of the last 3 financial years for both our targeted companies and competitors. The ratios will be split into four categories liquidity, profitability, financing and investment. Finally we will then standardise the ratios and compare our three chosen companies. We will use a marking system to identify which company we feel excel in each ratio to help us arrive at our chosen investment vehicle. The three companies in which we will be conducting the report on are: 1) MGM Grand Sector: Leisure Tourism Fiscal year: Jan 01st – Dec 31st 2) Rio Tinto Sector: Mining Fiscal year: Jan 01st – Dec 31st 3) Toyota Sector: Car manufacturing Fiscal year: April 01st – March 31st Investment Objective A medium term investment of 5 years Provide income through dividends Provide capital growth at the end of the term We would be looking at an annual expected return of between 8% and 10% Tax Implications 6IM discussed about the tax implications of our investment objectives. We felt that as we were all basic rate taxpayers receiving a dividend would be beneficial as we would not be impeded by the non reclaimable 10% tax credit or would we have a further liability of 22.5% due to the fact we were not higher rate tax payers. Regarding capital growth it was decided that if our money had grown substantially over the five years and the profit was above the capital gains tax annual exemption we would realise the gains over two tax years to ensure we would utilise as much of the gain tax free as possible. According to Tax Facts 2009-2010 (2009), Current Capital Gains Tax annual exemption is:  £ 10,100 (2009-10) Current Capital Gains Tax subject to being over the exemption is: 18% Attitude to Risk 6IM have agreed that we will adopt a moderately adventurous attitude to risk. As part of our risk assessment, collectively we decided to assess ourselves using a risk attitude profiling questionnaire as per Appendix II which was designed by Scottish Life a leading Life Pension investment provider. We discussed our views on ethical investments and we concluded that whilst our opinions were not strong enough to adopt negative screening criteria which would be to completely disregard any unethical company, we would look to see if the companies are trying to improve the way they work. In respect of the three companies chosen we also discussed that we would need to be aware of currency risk, political risk, market risk and inflation risk which would be in addition to the business risk and investment specific risk of the company. Finally our thoughts were if we felt that each of the companies were viable in respect of investment we would be happy to spilt our money and invest in all three which would gain potentially reduce our risk through diversification. 2 Marketing and industry data 2.1 MGM GRAND 2.1.1 Background and mission Background MGM operates in a very competitive entertainment and hospitality industry and is located on the New York Stock Exchange. The company owns, develops and operates casino and non casino resorts. The majority of MGMs hotels are located in Nevada where they own approximately 700 acres of land on the Las Vegas strip. Whilst MGM have a variety of hotels that occupies this land they also have a meaningful proportion that is considered undeveloped and could offer future investment opportunities. As well as resorts in Las Vegas, MGM also have operations in Michigan, Mississippi, Macau, Atlantic City and Illinois. One of their latest developments is the MGM Grand Ho Tram which will consist of a 4.2 billion multi property resort complex along the beaches of Southern China. In addition to this MGM will also open in December 2009 on the Las Vegas strip a project called City Centre which is a joint venture with Dubai World. MGM as at 31st December 2008 employ approximately 46,000 full time staff and 15,000 part time staff, they pride themselves on offering excellent customer service which has been demonstrated by many accolades, including AAA five diamond and 4 diamond awards at hotels and restaurants across their portfolio. There quality and reputation was enhanced further in October this year when 7 of MGMs restaurants were honoured with at least one Michelin star which demonstrates the quality they strive for. MGMs revenue in 2008 decreased by 6.27% which was largely down to the economic conditions and with MGM having the vast majority of its portfolio in Las Vegas this could be demonstrated by the reduction in visitor volumes during the time period (Appendix I). MGM feel whilst times are currently tough James J. Murren Chairman and CEO states â€Å"There company is well positioned to face the future thanks to our dedicated management team and work force, premier brands and best in class resorts. When the cycle changes, we will be stronger, with a foundation of experienced operators and an efficient operating profile that is not only business ready but has been battle tested.† (MGM Annual Report, 2008 p.8) Mission MGM Mirage Mission Statement, â€Å"Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance a shareholder value and to sustain employee, customer and community relationships† (MGM Mirage, 2009). 2.1.2 SWOT analysis Strength Quality Employees: MGM have invested heavily in recruiting, training and maintaining employees. They run a variety of programs for example a diversity program which looks at unique strengths of individuals and being able to blend them to work together to achieve greater performance. In addition to training, to ensure they maintain their employees in August 2007 MGM entered into an agreement with 21,000 thousand of its Las Vegas employees to provide an increase in wages and benefits of approximately 4% annually. Diversified Offering: MGM would be expected to earn the majority of its revenues from gaming however this is not the case with over half of its net revenue derived from non gaming activities. MGM offer a complete resort experience for its guests, with their non-gaming activities being offered at a premium due to the quality of their offering. Brand Name Awareness: MGM is one of the leading hotel and leisure companies as at December 31st 2008 their operations consisted of 17 wholly owned casino resorts and a 50% investment in 4 other casino resorts. This high brand name awareness gives MGM a distinct advantage when competing against other casino brands and helps enable them to draw more customers. Weaknesses Financial Strength: In February 2009 all of the major credit rating agencies – Moodys, Standard Poors and Fitch downgraded MGMs rating on long term debt, there was a further downgrade by Moodys in March 2009. These downgrades will again potentially make it very difficult for MGM to obtain debt finance and may even increase the cost of any future debt financing. Amount of Indebtedness: As at the 31st December 2008, MGM had long term debt totalling approximately US$ 13.5 billion dollars. The amount of debt and the inability of MGM to take on further debt could have a catastrophic impact on its business. It is uncertain that the sources of credit they have available will be sufficient to fund current financial commitments, whilst MGM have received a waiver that they do not have to comply with certain financial covenants this has led to further restrictions and requirements for them to adhere to. Weak Returns: In 2008 MGM have seen a reduction in the majority of their financial ratios compared with its 2007 figures. The figures can be seen in our ratio analysis section of the report and whilst an explanation of the figures have been discussed, the reduced ratios can only cause investors concern and a reduction in confidence in placing investment into MGM. Opportunities Joint Ventures to co-develop resorts and Casinos. Expansion in developing countries. Threats Legal and Regulatory Threat: The gaming industry is highly regulated in which MGM must pay gaming taxes and maintain their licenses to continue their operations. A change in tax laws could adversely affect the profitability of their organization, in addition to tax changes if a regulation is violated in one jurisdiction this could result in disciplinary actions in other jurisdictions. Economic Market: Hotel revenue decreased by 10% in 2008 due to decreased occupancy and lower average room rates. The customers however that do make it to the resorts are spending less, which MGM believe is due to their inability to access near term credit which has led to a shift in spending from discretionary items to more fundamental costs (MGM Annual Report, 2008). A direct impact on MGM is the weak housing and real estate market both generally and in Nevada. 2.1.3 Leisure Tourism industry Five Forces analysis Threat of new entrant Due to the current economy recession, hotel industry suffered a setback in revenue. Hence, this industry is viewed as unattractive. Excessive initial setup investment. Extensive regulation generally concerns the firms responsibility, financial stability and character of the owners. Also, high license maintenance fee and gaming taxes discourages new entrants. New entrants to such markets must then spend heavily on advertising and promotion to gain levels of brand awareness of the existing players. Intensity of rivalry among competitors Hotel, resort and gaming business, especially in Las Vegas and Macau, had became increasingly intense where there is rivalry to build the â€Å"biggest and best† hotel/casino. Between 1996 and 2000, the number of hotel rooms at Las Vegas casinos doubled and due to the current economic conditions, the demand for rooms had dropped significantly and resulted in reductions to average room rates due to competitive pressures. Competition between casino companies involved ever more ambitious differentiation. The new casinos in Las Vegas broke fresh ground in innovative entertainment and design features. Threat of substitute products There had been a growing substitute competition for gaming which included an increasing number of state lotteries and offshore gambling on cruise ships. The installation of slot machines in unorthodox gambling area such as horse tracks. The growth of internet gambling. Bargaining power of buyers In the entertainment industry, buyers (consumer) usually have relatively high bargaining power as there is a practically negligible switching cost. The tendency of buyers to explore different hotel for a different experience. Accessibility of information via internet on hotel packages, consumers are now more informed and prepared for the wide range of available hotels specifically in Las Vegas and Macau. Bargaining power of supplier The main sources of supplier power in the service industry are labour unions. The unions cover approximately half of their total employees (30,000 of 61,000 employees) and had successfully negotiated for increases in wages and benefits of approximately 4% annually via the newly signed 5 year collective bargaining agreement in August 2007. The other supplies to hotel consist of food and beverage, retail merchandise and operating supplies. Due to economies of scale, big buyers like MGM would have an advantage over their suppliers as they can easily switch due to the wide availability of the supplies and its continuous stream of demand. 2.2 RIO TINTO 2.2.1 Background and mission Background Rio Tinto is a leading international mining business headquartered in London. Rio Tinto Group combines Rio Tinto Plc (listed on London Stock Exchange) and Rio Tinto Limited (listed on the Australian Securities Exchange) and operates as a single entity. The group is involved in mining and supply of minerals and metals including aluminium, coal, copper, diamonds, gold, iron ore, uranium and other industrial minerals. It operates in more than 50 countries and employs approximately 106,000 people (Rio Tinto, 2008). The companys main production areas are in Australia and North America however there are significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto concentrates on large scale mining operations that have a long life and are cost effective. The company recorded revenue of US$ 54,264 million in 2008, an increase of 83% over 2007. Annual production records set for iron ore, bauxite and alumina. The business had a record net capital expenditure of US$ 8.5 billion, a 71% rise over 2007 (Rio Tinto, 2008). Mission â€Å"Rio Tinto aimsto maximise the overall return to its shareholders by sustainably finding, mining and processing mineral resources areas of expertise in which we have a clear competitive advantage.A fundamental part ofthis is to deliver value while operating in an ethically and socially responsible manner, and remaining committed to long term sustainable development.† (Rio Tinto, 2009) 2.2.2 SWOT analysis Strength International mining group ranks amongst top five commodities producers. Rio Tinto has extensive line of business (Iron ore, Copper, Energy, Aluminium, Industrial Minerals and Diamond) and each division provides its services to different industries. Company is well diversified in terms of the products and the markets. Geographically companies operations are spread over six continents. Globally number one producer of Aluminium because of recent acquisition of Alcan in October 2007. Alcan was ranked globally among top three producers of Aluminium and Bauxite. Worlds largest Uranium supplier. Weaknesses Majority of Iron ore and coal contracts are sold at annual contract price rather than the spot market. There is a significant deterioration in the pricing environment of these commodities. Production of zinc and silver by the company has been decreasing in recent times. Opportunities BP and Rio Tinto entered into partnership for the formation of a new jointly owned company, Hydrogen Energy, which will develop decarbonised energy projects around the world and lead the path for sustainable future uses of coal. The growing importance of uranium as a resource for future energy needs. Threats In the recent time there is a significant reduction in the commodity prices and the demand of the market especially because of the global economic crisis. Rising concern for environmental issues, health and safety standards across the globe. Especially for the industry to meet standards and quotes agreed in the KYOTO Protocol. 2.2.3 Mining industry Five Forces analysis Threat of new entrant High demand of capital as entry cost makes it tough for new entrant to enter in this field. Very low availability of new mining areas (mines) and risk on capital involved in searching for new mining areas restricts new entry in this field. Requirement of high, sophisticated and costly technology is again an entry barrier for new entrant. High government and environmental regulations. Intensity of rivalry among competitors High demand and optimum supply leads to limited rivalry amongst competitors. Threat of substitute products Being a standardised product (commodities) and basic raw material to the industry or to the end customers, there is no availability of substitute. Prices are fixed at macro level generally by external authorities (government) so the variability in prices of different suppliers is absent. Bargaining power of buyers Strong control on Pricing by government leads to low bargaining power of customers. Unavailability of substitute products shifts the favour towards the supplier from the customers. Customers (Industries) dependency on existing channel of distribution and product is very high; therefore the customers power is again low. Bargaining power of supplier Bargaining power of suppliers supplying technology is high because of the sophisticated technology requirement and reduced availability of specialist suppliers. Skilled labour requirements are high and availability is lower because of less lucrative future prospects that shift the favour towards suppliers. 2.3 TOYOTA 2.3.1 Background and mission Background Toyota Motor, the worlds largest automotive manufacturer, has a powerful aspiration to become ‘Greener. The company makes a hybrid-powered (petrol and electric) sedan – the ‘Prius that is being snapped up in US and European markets. Its petrol-powered cars, pickups, minivans, and SUVs include such models as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the Scion brand, and a full-sized pickup truck, the V-8 Tundra. Toyota also makes forklifts, manufactured housing and offers financial services. Once a dark horse in the global automotive game, Toyota overtook Chrysler and Ford in worldwide sales and surpassed General Motors in 2008. The company gets nearly half of its sales from Asia (Just Auto, 2009). Mission Toyotas management value has developed from the companys origins and has been contemplated in the termsâ€Å"Just in Time Production† and Lean Manufacturing, which it was instrumental in developing (Strategonic, 2009). The Toyota Way has five mechanisms (Liker Jeffrey K., 2003): Perfecting business process. Eliminating wasted time and resources Building quality into workplace systems Building a learning culture for continuous improvement. Finding low-cost but reliable alternatives to expensive new technology 2.3.2 SWOT analysis Strength Toyota has become the lead name in the global market. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. The important edge over the companys competitors is the ample availability of the spare parts in the markets. Toyota is a financially strong company. This can be demonstrated by the analysis of the financial reports. Toyota vehicles have got a much stronger resale value than any other car in the global markets. This is why people prefer to buy a Toyota. Toyota is proud to have a successful team of competent managers and skilled workers. Extensive training has enabled the employees to perform outstandingly. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. Weaknesses Being big has its own problems. The World market for cars is in a condition of oversupply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan therefore it is exposed to fluctuating economic and political conditions in those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging India and Chinese markets. Movements in exchange rates could see the already narrow margins in the car market being reduced. There are some weaknesses in the dealership network. The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. This can result in customer complaints. A lot of effort is put into the sales forecasting because of the changing political and economic scenarios. For these reasons inventory has to be kept low. Opportunities Export is a major opportunity for Toyota Motors. Toyota can do better by focusing on segments much more than what is presently being done. Toyota is to target the urban youth market. The company has launched its Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at the rear. The narrow segment is notorious for it narrows margins and difficulties for branding. Switching diesel market toward petrol and CNG market. Threats Even though Toyota enjoys the position of being the no.1 automobile company, still it faces some threat from competitors especially Honda. Honda has adopted aggressive strategies for capturing the market. In 2005 the recall of 80,000 SUVs negatively impacted on the brand of Toyota and posed a threat to its future reliability and sales. Even though Toyota keeps a careful eye on the changing trends, still the changing customer needs and trends can prove to be a threat. 2.3.3 Automobile industry Five Forces analysis Threat of new entrant Slow lethargic state of economy resulting in low per capita income leads to declined consumption. Hence, the productivity decreased at manufacturing level. Automobile sector is already over saturated market for the provided demand base. Initial cost of capital is very large. Industry requires highly specialised technology or plants and equipments. Constant RD: Patent and proprietary of auto designs restrict the entry into an industry. Intensity of rivalry among competitors Due to high cost of competition automobile industry earns low returns. Competition has intensified rivalry by offering rebates, long-term warranties and preferred financing to lure the customers which have put pressure on the profit margins. Foreign Trade increased the degree of rivalry. Export becomes essential for expansion and competition. High exit barrier: Entrants are reluctant to commit to acquiring specialised assets that cannot be sold or converted into other uses if the venture fails. Threat of substitute products Consumer seek substitute like bus, train or aeroplane to reach their destination. Peoples likeliness to seek alternative transportation depends upon the cost of operating a vehicle. Higher the operating cost less likely people will buy the automobile. Consumers decision to buy vehicles largely depends upon the price of petrol. Emergence of very small and economical car segment in automobile sector. Bargaining power of buyers Consumers are highly price sensitive and generally dont hold much buying power as they never do bulk purchase of cars. Wider range of product, negligible switching cost, readily available. More shrewd customers: Customers are very particular in terms of brand selection, technology and price of product. Dealers are cherishing the freedom of selling more than one brand at any time. Bargaining power of supplier Due to the fragmented automobile industry, most of the suppliers depend on just one or two automakers to buy majority of the products. Switching the supplier is devastating to the business of previous supplier. Long term supplier relationship in the automobile sector, which is considered to be an oligopoly, makes the relationship obligatory for suppliers and hence the supplier has lower grip on the prices Suppliers provide secondary material and have little responsibility over the design and assembly of automakers. Therefore, essentially little power is given to suppliers. 3 Financial Analysis The report describes a financial statement analysis between companies of our choice with their closest competitor which is followed by a 3 year trend analysis to provide an indication of the consistency of the companys performance. Assessment of performance will focus on 4 main areas namely profitability, liquidity, financing and investment. In order to provide comparability, relevant financial figures are converted to US dollar as per exchange rate stated in respective annual report. 3.1 MGM GRAND 3.1.1 Profitability Gross Operating Margin According to Walton and Aerts (2009) gross operating margin is the preferred ratio to measure operation efficiency. In the hotel industry, cost of sales revolve around payroll related expenses, gaming related taxes, room, convention, retails and other expenses. In year 2008, MGMs gross operating profit had dropped from 48% to 44%, due to drop in room occupancy by 10% affecting sales with no reduction in Cost of Sales in comparison to 2007. Stagnant Cost of Sales could be explained as there are several fixed expenses like payroll, electricity, food, etc would still be maintained regardless of room occupancy and further to that, in August 2007, there are total of 21,000 MGM employees entered into a 5 year agreement which provides approximately 4% annual increment in wages and benefits. This had contributed to the increase of the payroll expenses in 2008. As for Las Vegas Sands, through the opening of new hotels like Venetian Macao, The Palazzo and Four Seasons in 2008 it had increased its sales, however there were a substantial amount of additional payroll, advertising and promotion as part of opening activities related expenses and the launching of new passenger ferry service operations in Macao where it had an additional US$100 million in operating expenses. This had affected its gross operating profit margin to drop from 40% to 36% in 2008. In terms of gross operating profit margin, MGM had been observed as a better company in controlling cost as its margin had been higher than competitor Las Vegas Sands by 7% on annual basis. Net Profit Margin According to Walton and Aerts (2009), net profit margin explains that the ratio shows how successful the management is in creating profit from a given quantity of sales. MGM has steadily increased its net profit margin except in 2008, this compares favourably to its competitor Las Vegas Sands who has shown a trend of reducing profits since 2006. The size of the loss however in 2008 was far greater for MGM. Whilst the revenues for MGM have remained fairly constant, the reduction in profit was largely down to certain areas of its operating expenses in particular US$1.2 billion impairment charge related to goodwill and an indefinite lived intangible asset recognised in the Mandalay acquisition in 2005. Having reviewed the accounts, we would also address an area of caution in the MGM profit margin in 2007 as there was a one off recognition of a US$1.03 billion gain in relation to the City Centre Project. Due to the fluctuation in MGM net profit margin due to several onetime adjustments in the years 2007 and 2008 which makes it insufficient for comparison against Las Vegas Sands, hence only figures from 2006 would be taken for assessment where Las Vegas Sands net profit margin seems more favourable than MGM. Return on capital employed (ROCE) Return on capital employed (ROCE) is a performance ratio that demonstrates how much the company has earned on invested long-term funds (Walton and Aerts, 2009). In 2008, MGM board of directors had announced 20 million share repurchase which caused the total shareholder equity to drop by 34%. With this drop, we would be expecting an increase in ROCE ratio from 0.17 to 0.19 if income before tax and long debt remains the same in 2008. However due to the loss in 2008, the actual ROCE ratio indicates a negative return of 0.79% in relation to equity. On the other hand, Las Vegas Sands ROCE ratio in 2008 had dropped by 2% due to the increased of total asset by 33% due to the distribution of common share and preference stock amounting US$ 2.56 billion, which increased the stockholder equity by 50% and additional long term debts amounting US$ 2.84 billion. Despite the fact that Las Vegas Sands ROCE ratio had dropped in 2008, Las Vegas Sands still stand a better position than MGM as there are still positive returns. Return on shareholders equity (ROECE) MGM over the three years have had a very volatile ROECE which saw progression from 2006 to 2007 but in 2008 produced a negative 5.22% return in relation to Shareholder Equity. The components that make up the ROECE are very similar to the ROCE except that the ROECE is after interest and tax but before payments of dividends. In respect of MGM dividends are irrelevant as they have not paid a dividend in the last three years. The negative return in 2008 was solely down to their losses of US$670 million from their continuing operations before income tax. This loss was further inflated by US$186 million provision for income tax expense even though the company made a loss. The provision was for a non deductable good

Oppostition To The New Deal :: essays research papers

Why was there opposition to the New Deal? In many ways the New Deal turned out to be a success. It clearly stopped the Depression from getting worse; gave hope and confidence to the American people at the worst tome in their history; and ‘saved’ American democracy. But why did it face so much opposition and criticism. Firstly, many people believed that the New Deal went against the basic principles of the American constitution. Many people, including the Republicans, thought that the government should not interfere with the economy or help the poor, i.e. there should be policy of laissez faire. However, Roosevelt defied this by setting up social welfare systems and by setting up the National Industry Recovery Act. Later on, however, the Supreme Court decided that several of Roosevelt’s laws were unconstitutional and they were subsequently vetoed. Moreover, after Roosevelt’s victory in the 1936 election, Roosevelt grew so confident that he felt he could replace members of the Supreme Court with people chosen by himself. However, this did no go down well with the American public and as a result many people began to oppose Roosevelt and his policies. Secondly, the New Deal meant that the rich were taxed more in order to pay for the schemes to help the poor. Many business leaders also opposed Roosevelt’s support for trade unions and employee rights. Wealthy business organisations, such as the American Liberty League, opposed Roosevelt. As they did not like the way the New Deal ‘interfered’ with business. Thirdly, more serious opposition came from radicals, such as Louisiana state senator Huey Long, who believed the government and the New Deal had not done enough to stop poverty and unemployment. Long called for taxation of the rich and the total confiscation of all fortunes over $5 million. His ‘Share our Wealth’ scheme, Long claimed, would give each American family $6,000 to spend. These ideas became very popular among the poor, with over 7.5 million people joining these schemes. There was also much opposition from the States who believed that the New Deal was undermining their authority. Oppostition To The New Deal :: essays research papers Why was there opposition to the New Deal? In many ways the New Deal turned out to be a success. It clearly stopped the Depression from getting worse; gave hope and confidence to the American people at the worst tome in their history; and ‘saved’ American democracy. But why did it face so much opposition and criticism. Firstly, many people believed that the New Deal went against the basic principles of the American constitution. Many people, including the Republicans, thought that the government should not interfere with the economy or help the poor, i.e. there should be policy of laissez faire. However, Roosevelt defied this by setting up social welfare systems and by setting up the National Industry Recovery Act. Later on, however, the Supreme Court decided that several of Roosevelt’s laws were unconstitutional and they were subsequently vetoed. Moreover, after Roosevelt’s victory in the 1936 election, Roosevelt grew so confident that he felt he could replace members of the Supreme Court with people chosen by himself. However, this did no go down well with the American public and as a result many people began to oppose Roosevelt and his policies. Secondly, the New Deal meant that the rich were taxed more in order to pay for the schemes to help the poor. Many business leaders also opposed Roosevelt’s support for trade unions and employee rights. Wealthy business organisations, such as the American Liberty League, opposed Roosevelt. As they did not like the way the New Deal ‘interfered’ with business. Thirdly, more serious opposition came from radicals, such as Louisiana state senator Huey Long, who believed the government and the New Deal had not done enough to stop poverty and unemployment. Long called for taxation of the rich and the total confiscation of all fortunes over $5 million. His ‘Share our Wealth’ scheme, Long claimed, would give each American family $6,000 to spend. These ideas became very popular among the poor, with over 7.5 million people joining these schemes. There was also much opposition from the States who believed that the New Deal was undermining their authority.